In the U.S. a private nursing home room costs well over $100,000 a year and assisted living around $65,000; costs have risen faster than general inflation. Medicare covers little long-term care, so plan with savings, LTC insurance or Medicaid planning.
How to use the Long-Term Care Cost Calculator
- Type of care
- Custom yearly cost
- Years until care starts
- Years of care
- Care cost inflation
- Investment return
Results update as you type, and every field accepts the units shown in its menu.
How it works
Choose the type of care (or enter your own cost), the years until care, the years of care, cost inflation and your investment return.
Tips
- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.
Common mistakes to avoid
- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.
Inputs explained
| Field | What to enter |
|---|---|
| Type of care | Choose one: Private nursing home room (≈ $350/day), Semi-private nursing home room (≈ $310/day), Assisted living (≈ $5,900/month), Home health aide, 44 h/week (≈ $6,500/month) … |
| Custom yearly cost | Amount in your currency |
| Years until care starts | A number |
| Years of care | A number |
| Care cost inflation | In % |
| Investment return | In % |
What each result means
- Yearly cost when care starts = [Yearly cost today]×(1 + [Care cost inflation]÷100)^[Years until care starts]
- Amount to set aside today = gpv([Investment return]÷100, [Years of care], [Yearly cost when care starts], [Care cost inflation]÷100, 1)÷(1 + [Investment return]÷100)^[Years until care starts]
Example values
How the main result changes when Custom yearly cost changes and everything else stays at the example values above:
| Custom yearly cost | Total cost of care |
|---|---|
| 30,000 | 873,785.73 |
| 45,000 | 873,785.73 |
| 60,000 | 873,785.73 |
| 75,000 | 873,785.73 |
| 90,000 | 873,785.73 |
| 120,000 | 873,785.73 |
Formula
Cost when care starts = today's yearly cost × (1 + inflation)^years until careTotal cost = Σ yearly costs over the care period (growing with inflation)Savings needed today = total cost discounted at your investment returnWorked example
Inputs — Type of care: Private nursing home room (≈ $350/day); Custom yearly cost: $60,000; Years until care starts: 20; Years of care: 3; Care cost inflation: 4 %; Investment return: 5 %.
Results — Yearly cost today = $127,750.00; Yearly cost when care starts = $279,915.98; Total cost of care = $873,785.73; Amount to set aside today = $313,487.53; Monthly saving needed until care starts = $2,023.62.
Frequently asked questions
How much does long-term care cost?
Often $70,000–$130,000+ a year depending on the setting and state.
Does Medicare pay for long-term care?
Only short skilled-nursing stays; not custodial care.
How long do people need long-term care?
On average about 3 years, but many need less and some much more.
What formula does the Long-Term Care Cost Calculator use?
Cost when care starts = today's yearly cost × (1 + inflation)^years until care.